Daily Pivots: (S1) 1.4165; (P) 1.4213; (R1) 1.4259; More…
EUR/AUD’s rally resumed by surging through 1.4334 to as high as 1.4437 so far. Intraday bias is back on the upside for 1.4721 key resistance. As noted before, we’re holding on to the case off trend reversal after defending 1.3671 key support. Decisive break of 1.4721 should confirm. On the downside, break of 1.4166 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction could be completed after defending 1.3671 key support. Break of 1.4721 cluster resistance (38.2% retracement of 1.6587 to 1.3624 at 1.4756) should confirm this case and target 61.8% retracement at 1.5455 and above. Overall, we’d expect the up trend from 1.1602 to resume later. However, sustained break of 1.3671 will invalidate our bullish view and would turn extend the fall from 1.6587 towards 1.1602 long term bottom.
